Citigroup (NYSE:C) Posts Earnings Results, Beats Estimates By $0.20 EPS

Citigroup (NYSE:C) announced its quarterly earnings data on Tuesday. The company reported $2.85 EPS for the quarter, beating analysts’ consensus estimates of $2.65 by $0.20, Zacks reports. Citigroup had a net margin of 10.23% and a return on equity of 10.15%. The business had revenue of $23.84 billion during the quarter, compared to analyst estimates of $23.72 billion. During the same quarter in the prior year, the business earned $1.86 earnings per share. The firm’s revenue for the quarter was up 7.9% on a year-over-year basis.

Here are the key takeaways from Citigroup’s conference call:

• Citi reported strong third-quarter results, with revenue up 8% year over year to $23.8 billion, net income up 17% to $5.2 billion, EPS of $2.85, and ROTCE of 11.5%. Management raised its full-year outlook to ROTCE above 11% and expects an efficiency ratio below 60%.
• Services revenue rose 15%, while wealth revenue increased 15% and attracted $38 billion in net new investment assets. Markets revenue grew 6%, including 14% growth in equities, and banking revenue increased 6% on strong equity capital markets activity.
• Citi returned more than $4 billion to shareholders in the quarter, including $3 billion in buybacks and a 12% increase in the quarterly dividend. The bank also reported a 12.8% CET1 ratio, about 120 basis points above its current regulatory minimum.
• U.S. Consumer Cards revenue was flat as partner payments and rewards investments reduced non-interest revenue by 62%, while the business recorded a $208 million reserve build. Citi also expects to recognize an approximately $9 billion Banamex-related CTA loss through the P&L in early 2027.
• Management expects normal fourth-quarter seasonality to reduce Markets revenue by roughly 20% sequentially, or potentially more after a strong year. Future capital returns and buybacks remain subject to pending Basel III, G-SIB, and stress-capital-rule changes.

Citigroup Trading Down 5.6%

Shares of NYSE:C opened at $124.56 on Wednesday. The firm has a market cap of $212.45 billion, a price-to-earnings ratio of 13.45, a PEG ratio of 0.58 and a beta of 1.13. Citigroup has a 12 month low of $95.00 and a 12 month high of $147.96. The company’s fifty day simple moving average is $133.46 and its 200 day simple moving average is $131.64. The company has a quick ratio of 0.99, a current ratio of 0.99 and a debt-to-equity ratio of 1.71.

Citigroup Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, August 28th. Investors of record on Monday, August 3rd were paid a dividend of $0.67 per share. This represents a $2.68 dividend on an annualized basis and a yield of 2.2%. The ex-dividend date of this dividend was Monday, August 3rd. This is a positive change from Citigroup’s previous quarterly dividend of $0.60. Citigroup’s dividend payout ratio (DPR) is currently 28.94%.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on C shares. Argus set a $150.00 price objective on Citigroup in a research note on Wednesday, July 15th. Evercore set a $140.00 target price on shares of Citigroup in a research report on Thursday, October 1st. Morgan Stanley lifted their price target on shares of Citigroup from $154.00 to $164.00 and gave the company an “overweight” rating in a report on Monday, June 29th. Wells Fargo & Company boosted their price target on shares of Citigroup from $162.00 to $165.00 and gave the company an “overweight” rating in a research report on Thursday, June 18th. Finally, UBS Group decreased their price objective on shares of Citigroup from $142.00 to $139.00 and set a “neutral” rating on the stock in a research note on Monday, October 5th. One research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, Citigroup presently has a consensus rating of “Moderate Buy” and a consensus target price of $151.47.

Trending Headlines about Citigroup

Here are the key news stories impacting Citigroup this week:

• Positive Sentiment: Citigroup reported third-quarter adjusted EPS of $2.85, above the approximately $2.65 analyst consensus, while revenue reached $23.85 billion, also exceeding expectations. Net income rose 40% year over year to $5.2 billion and revenue increased 8%. Reuters report on Citigroup earnings
• Positive Sentiment: Growth was broad-based: Services and Wealth revenue each increased 15%, Markets revenue rose 6%, and net interest income excluding Markets grew 7%. Management also raised its full-year 2026 net interest income growth outlook to the mid-to-high single digits. Citigroup quarterly revenue and net income report
• Positive Sentiment: Citi returned $4.1 billion to common shareholders through dividends and buybacks, while credit quality across major banks remained generally healthy with no broad signs of rising loan losses.
• Neutral Sentiment: Fixed-income trading was a major contributor to the beat, but management is completing a multiyear restructuring and continuing efforts to resolve lingering regulatory requirements, leaving investors focused on execution and sustainable returns. Citigroup regulatory requirements report
• Negative Sentiment: The principal concern was the outlook: Citi CFO Gonzalo Luchetti expects fourth-quarter Markets revenue to fall about 20% from the third quarter, or potentially more. Investment-banking activity also declined sequentially, despite year-over-year growth.
• Negative Sentiment: U.S. Consumer Cards revenue was flat, while credit-loss provisions increased to roughly $2.6 billion as the bank built reserves. Analysts also cited weaker capital ratios and sequential declines in firm-wide profitability as offsets to the earnings beat. Zacks analysis of Citigroup earnings

Citigroup Company Profile

Citigroup Inc is a global financial services company headquartered in New York City and listed on the New York Stock Exchange under the symbol C. Through its subsidiaries and businesses, Citi provides banking, lending, investment, payments, wealth management and other financial services to consumers, businesses, governments and institutional clients.

Citi’s principal businesses include Services, which supports institutional clients with treasury, trade, securities services and related solutions; Markets, which provides sales, trading, research and financing services; Banking, which offers investment banking and corporate banking; and Wealth, which provides private banking and wealth management.